By theG&BJournal
FRI FEB 27 2026-theGBJournal| Nigeria’s Gross Domestic Product (GDP) expanded by 4.07 per cent year-on-year in the fourth quarter of 2025, higher than the 3.76% recorded in the fourth
quarter of 2024, according to data published by the National Bureau of Statistics (NBS).
The growth pace signals a firmer rebound in economic activity as reforms and improved sectoral performance begin to gain traction.
The growth outturn, higher than analysts estimates, also marks a notable acceleration from previous quarters, underscoring renewed momentum across key segments of the economy.
The expansion was driven largely by stronger performance in the non-oil sector, which grew by 3.99% with services, trade, construction, transportation and Storage, telecommunications, manufacturing and financial activities providing the bulk of the lift.
In real terms, the non-oil sector contributed 97.13% to the GDP in the quarter under review, slightly lower than the 97.20% recorded in Q4-24.
The oil sector also showed signs of stabilisation amid improved production levels, helping to reinforce headline growth and boost overall output.
The NBS clocked the oil sector growth at s 6.79% (y/y) in Q4 2025, indicating an increase of 4.71% points relative to the rate recorded in the corresponding quarter of 2024 (2.08%).
The NBS data puts oil production of 1.58 million barrels per day (mbpd), higher than the daily average production of 1.54 mbpd recorded in the same quarter of 2024 by 0.04 mbpd and lower than the third quarter of 2025 production volume of 1.64 mbpd by 0.06 mbpd.
The sector contributed 2.87% to the total real GDP in Q4 2025, up from the figure recorded in the corresponding period of 2024 at 2.80% and down from the preceding quarter, where it contributed 3.44%.
Overall contribution stood at 3.53% in 2025, higher than its contribution of 3.38% in 2024.
The latest figures suggest that policy adjustments introduced under President Bola Tinubu’s administration — including fiscal consolidation efforts and market-oriented reforms — are beginning to translate into measurable economic gains.
Analysts say the improved growth print could strengthen investor sentiment, particularly as inflationary pressures show early signs of moderation.
However, despite the encouraging headline number, challenges remain. High living costs, exchange rate volatility and elevated borrowing costs continue to weigh on households and businesses, raising questions about the sustainability and inclusiveness of the recovery heading into 2026.
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